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7 Strictly Private & Confidential – Property of ManagePay Group All Rights ReservedMPOS Market PotentialMarket Research by– ReportsNReports (US based market research company)• Forecasts that by 2017, MPOS unit is expected to growfrom 4.5 million to a staggering 38 million, drive by growthin retail sector and more smartphone and card users.• By 2017, adoption of MPOS unit over conventional POS terminals will be46%, as opposed to 17% on 2012– IDC (International Data Corporation) has projected 1 billionSmartphone ship globally by 2015, support growing of MPOS.– Juniper Research has projected global mobile payment value by 2015is around USD670 billion.

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8 Strictly Private & Confidential – Property of ManagePay Group All Rights ReservedMPOS Target Merchant Based• Require Lower Ownership and Setup CostMerchants who find the cost of setting up and maintaining aconventional purpose-built POS Terminal too high to allow forprofitable card acceptance, particularly small merchants(SMEs or Micro Enterprises) who have low retail volume• Doing Business on the moveMerchants who need an alternative to fix telephone line due toa lack of available infrastructure or because of the mobile natureof the merchant’s business• Enhanced Retail ‘s Customer ExperiencesMerchants who wish to enhance the retail experience by shortening lines or offering product look-upsand payment throughout the store, through flexible integration between MPOS solution with theirpresent point-of-sale system.• First Time MerchantMerchant who never accept card payment before, and now being offer a simple and cheap solution toexpand their business sales*Approximately 75% of the MPOS merchant are First Time Merchant

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9 Strictly Private & Confidential – Property of ManagePay Group All Rights ReservedMPOS Vs POS TerminalsAdvantages of MPOS solutions versus conventional POS terminals:• Lower total cost of ownershipMPOS solutions are being offered either for free or at a very low cost.Many merchants already own suitable mobile devices, so they can avoidadditional costs related to purchasing, deploying, and maintaining aPOS terminal.• Better mobility and greater ease of usePerfect solution for mobile merchants with no fixed place of business, doing business on the move.• More flexible software development platformsIntegrate easily with existing solution or development environments for greater service and paymentexperiences.• Better user interfacesFriendly and simple design make it usage friendly for merchant and consumer• Centralize cloud based application management, lower cost of maintenancePayment application managed on the cloud, all software patches, update and enhancement is easily donethrough an app update on iOS AppStore, Google Android Play Store, and Windows Store. Cutting downtremendous support and maintenance cost.

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17 Strictly Private & Confidential – Property of ManagePay Group All Rights ReservedMPOS Security Control• MPOS Solution must be in compliances with regulated policiesand standards defined by Card Scheme & PaymentGovernance bodies.• MPOS Solution must adhere to some security practices here:i. Securing MPOS Payment Applications• Industry recognized secure coding practices• MPOS application can be activated and disabled remotelyii. Securing Transaction Data Captured by an MPOS Card Reader• Utilize point-to-point encryption (P2PE) which encrypts transaction data within the MPOS card readerand transmits the enciphered data via the mobile device to the MPOS remote host. No data capturedat the mobile phone.• Authentication of the MPOS application and card reader accessory to ensure that data can onlyoriginate from legitimate merchants using genuine MPOS solutions.• Transaction data received from the MPOS solution are validated at remote host to ensure it isauthentic.iii. Securing Card Holder Data on mobile device• No storing of card holder data in the mobile device, must be in compliances with the PCI PA-DSSstandard.* MPOS Solution is developed with strict regulated guidelines and processes, it will be discuss further in the topic onGuidelines, Compliances and Policies.

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22 Strictly Private & Confidential – Property of ManagePay Group All Rights ReservedMPOS Security Guidelines, Compliances & Policies - IIIPCI SSC (PCI Security Standard Council)– PCI DSS (Data Security Standard)Set of policies and procedures intended to optimize the security of credit, debit and cash card transactions andprotect cardholders against misuse of their personal information. It cover the security protection for card dataProcessing, Transmitting & Storing. Acquirer or Payment processors must certified with the PCI DSS ServiceProvider or in compliances to roll out the MPOS solution.– PCI PA-DSS (Payment Application Data Security Standard)Provide the definitive data standard for software vendors that develop payment applications. The standardaims to prevent developed payment applications for third parties from storing prohibited secure dataincluding track 2 data, CVV2, PAN number, Expiry date, and PIN. MPOS on consumer devices is exemptedpresently from this certification but MPOS application must develop according to the standards defined.– PCI PTS (Pin Transaction Security)Protect consumer PIN data from theft. It is also intended to enforce hardware security of devices that acceptconsumer PINs and house secret encryption keys of the acquirer, including how the PIN Entry Device (PED) isproduced, controlled, transported, stored and used throughout its life cycle. For country supporting chip andpin, the MPOS reader must be certified with PCI PTS since the readers comes with pin pad.

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24 Strictly Private & Confidential – Property of ManagePay Group All Rights ReservedMPOS Security Guidelines, Compliances & Policies - IVMasterCard– MTIP (MasterCard Terminal Integration Process)Certification process to ensure the EMV Application developedable to support global mastercard transaction with MasterCardacquiring host.– TQM (Terminal Quality Management)MasterCard Terminal Quality Management (TQM) programme guarantees acquirers that theterminals they source are consistent with the card interface module sample approved byEMVCo. The TQM process focuses on the smart card and contactless interfaces of theterminal hardware and is complementary to EMV Level 1.– MPOS BEST PRACTICES PROGRAM (MOBILE POINT OF SALE)Solutions Self Certified Against MasterCard MPOS Best Practices* Mastercard has developed MPOS Solution Security Guidelines, as well as MPOS best practices for bothsolution and service provider and the merchants since end of 2011.

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27 Strictly Private & Confidential – Property of ManagePay Group All Rights ReservedSummary• MPOS solution will be the catalyst in promotinggrowth in the trading and retail businesses.• With the huge numbers of SMEs & MicroEnterprises in Indonesia, and huge numbers ofretail & trading transaction daily, the low costpayment devices MPOS will be choice of securepayment solution.